Wednesday Jan 28, 2026
Wednesday Jan 28, 2026
Wednesday, 28 January 2026 00:02 - - {{hitsCtrl.values.hits}}
Cabinet Spokesman and Minister
Dr. Nalinda Jayatissa
The Cabinet of Ministers has approved the cancellation of the previously approved Medical Equipment Division Development Loan Project, which was to be implemented with concessional financing from the Economic Development Cooperation Fund of the Korean Export-Import Bank, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said.
The project had received Cabinet approval in April 2019 with the objective of strengthening diagnostic and treatment capacity at healthcare institutions islandwide through the procurement of essential medical equipment. However, subsequent reviews identified practical implementation constraints.
During discussions held in Colombo in June 2025 with the Economic Development Cooperation Fund of the Korean Export-Import Bank, both parties agreed on the appropriateness of cancelling the project and exploring alternative initiatives with a stronger alignment to current national health priorities.
Accordingly, Cabinet has approved a proposal submitted by the Minister of Health and Mass Media to formally cancel the project and to proceed with obtaining funding from the Korean Export-Import Bank to conduct a feasibility study for the re-establishment of the Matara General Hospital at Kaburugamuwa, in line with the Comprehensive Plan for Matara Urban Development.
